Successful start to car scrapping scheme

The car scrapping scheme that was launched by the Labour government last month has shown initial signs of success according to recently released figures.

When the scheme was initially launched there were mixed reactions with regards to how successful it would be. The motor industry had been calling for the scheme to be brought in for some time, after reports showed that similar schemes in countries such as Germany had proven successful in boosting the ailing motor industry.

Under the scheme those that have a car that is at least ten years old, and which they have owned for at least twelve months, can get up to £2000 off the cost of a new car.

Many thought that whilst £2000 could help the fact that they would have to still find thousands of pounds for a new car would make the scheme unviable for many. However, initial figures that have been released have shown that the scheme has got off to a promising start.

The figures showed that more than 35,000 new cars have been ordered as a result of the car scrapping scheme, which comes as a much needed boost to the motor industry, which had been experiencing real problems since the onset of the financial crisis.

Government officials have said that they are very pleased with the figures, and the motor industry has said that many of the vehicles would not have been ordered had it not been for the scheme.

An official from the Society of Motor Manufacturers and Traders stated: ‘The industry has been encouraged by the positive start to the scrappage incentive scheme shown through increased orders, showroom traffic and web inquiries. But it will be a couple of months before we can really assess the true impact on the market through the monthly registrations data.’

Tags: industry, scheme, official, monthly registrations data, Labour, car insurance, showroom traffic, new cars